Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The income tax expense consists of (in thousands):
2020 2019 2018
Current:
Federal
$ 13,074  $ 22,342  $ 3,333 
State
4,872  6,913  5,561 
Foreign
3,324  3,470  790 
      
21,270  32,725  9,684 
Deferred:
Federal
1,020  1,753  15,396 
State
(1,217) 387  (2,250)
Foreign
(3,102) (3,345) (558)
(3,299) (1,205) 12,588 
Income tax expense $ 17,971  $ 31,520  $ 22,272 
Differences Between Provision for Income Taxes and Income Taxes at Statutory Federal Income Tax Rate
Income tax expense differs from the amounts computed by applying the US federal statutory tax rate as a result of the following (in thousands):
2020 2019 2018
Income tax at US federal statutory tax rate $ 41,294  $ 19,057  $ 40,092 
State income tax, net of federal benefit
4,776  5,332  3,488 
Foreign rate differential
1,578  1,372  226 
Stock-based compensation
(31,578) 2,352  (19,631)
Nondeductible items
6,957  2,611  1,119 
Research and development
(9,528) (2,379) (4,622)
Uncertain tax positions
2,902  2,714  2,699 
Change in tax rate – other
1,066  —  (508)
Change in valuation allowance
601  530  692 
Other, net
(97) (69) (1,283)
Income tax expense
$ 17,971  $ 31,520  $ 22,272 
Deferred Tax Assets and Liabilities
The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at December 31, 2020 and 2019 are presented below (in thousands):
2020 2019
Deferred tax assets:
   Net operating loss carryforward
$ 7,659  $ 4,006 
   Tax credit carryforwards
9,046  7,287 
   Lease right of use liabilities
15,946  4,537 
   Stock compensation
11,249  13,419 
   Accruals
12,277  8,543 
     Fixed assets 211  — 
      Gross deferred tax assets
56,388  37,792 
Less: Valuation allowance
(2,509) (1,717)
Deferred tax assets, net of valuation allowance
53,879  36,075 
Deferred tax liabilities:
Fixed assets —  (127)
   Intangibles
(18,995) (15,331)
   Lease right of use assets (15,308) (4,140)
   Federal benefit of state tax deferred tax assets
(722) (876)
      Gross deferred tax liabilities
(35,025) (20,474)
      Deferred tax assets, net
$ 18,854  $ 15,601 
Reconciliation of Total Amounts of Unrecognized Tax Benefits
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 (in thousands):
Unrecognized Tax Benefits
Balance at December 31, 2017 $ (9,650)
Additions for tax positions of prior years (1,396)
Reduction for tax positions of prior years 275 
Additions for tax positions of the current year (2,418)
Balance at December 31, 2018 $ (13,189)
Additions for tax positions of prior years (1,416)
Reduction for tax positions of prior years 104 
Additions for tax positions of the current year (1,522)
Additions related to acquisitions (523)
Balance at December 31, 2019 $ (16,546)
Additions for tax positions of prior years (661)
Reduction for tax positions of prior years 11 
Additions for tax positions of the current year (2,340)
Balance at December 31, 2020 $ (19,536)